Can you do rvm info and post the result here in an edit to your question please?
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Brett BenderJan 18 '11 at 19:08

"What on earth do I do?" - You follow the instructions on RVM's install page. Read them, do them. Do the "Post Install" steps. Try the "Trouble Shooting Your Install" steps. This sort of pain can easily be avoid by reading before jumping in, and reading to the bottom of the page.
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the Tin ManJan 20 '11 at 2:13

ur rvm info gives home: not set and ruby not set and environment all not set , that is the problem. I have a look for you...
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c2h2Jan 18 '11 at 19:27

1

from that ryanbigg.com/2010/12/ubuntu-ruby-rvm-rails-and-you it tells u to put it into .bashrc or .bash_profile, but it wouldn't run it until u open another shell or login again. there for you need to run it so it will setup the PATH correctly...
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c2h2Jan 18 '11 at 20:08